Towards a communication-based typology of management control modes: showing the relevance of communicative action for entrepreneurial settings

Abstract

This study uses Habermas's Theory of Communicative Action to illustrate the relevance of adopting a communication-based approach in order to better understand the management control process. We develop a three-dimensional measurement model to analyse the act of communication in the management control process in terms of organisational communication, interpersonal communication and managerial communication. We use this model to propose a typology of management control modes and define four modes of communication for the management control process: communicative, relational, command-control and informative. We found that one situation corresponds to highly efficient communication, based on mechanisms for circulating and sharing organisational information. Our results and typology support the idea that communication is a crucial item within the management control process and that it enables it through two specific channels: interpersonal and organisational communication. This communicative management control mode is consistent with new challenges and growth opportunities that emerge in settings such as the ones of entrepreneurship.